May 08, 2026
By Anjali Kochhar
JPMorgan, Ripple, Mastercard and Ondo Finance have completed what the companies describe as the first near real-time, cross-border and cross-bank redemption of a tokenized U.S. Treasury fund using a combination of blockchain infrastructure and traditional banking rails, marking a major milestone for the tokenized real-world asset market.
The pilot transaction connected Ripple’s XRP Ledger (XRPL), Ondo Finance’s tokenized Treasury product, Mastercard’s Multi-Token Network and JPMorgan’s Kinexys blockchain payments platform in a single integrated settlement flow. The firms said the transaction demonstrated how tokenized assets can move seamlessly between public blockchain systems and regulated banking infrastructure.
According to Ondo Finance, the process began when the company redeemed Ripple’s holdings of OUSG, the Ondo Short-Term U.S. Government Treasuries fund, directly on the XRP Ledger. OUSG is a tokenized U.S. Treasury product backed by short-term U.S. government securities and designed for accredited investors and qualified purchasers.
Mastercard’s Multi-Token Network was then used to route settlement instructions between the blockchain and traditional financial systems. JPMorgan’s Kinexys platform, formerly known as JPM Coin and Onyx, handled the fiat leg of the transaction and ultimately delivered U.S. dollars to Ripple’s bank account in Singapore.
The entire transaction reportedly settled in under five seconds and was completed outside traditional banking hours, showcasing the possibility of 24/7 global financial markets powered by blockchain infrastructure.
Ripple said in a statement posted on X that “by combining the XRP Ledger with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions in a single integrated flow.” Ondo Finance added that “tokenized assets are no longer separate from the global financial system” and described the pilot as the first time a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time.
Ondo President Ian De Bode said the collaboration lays the groundwork for “24/7 global markets that never close.”
The pilot is being viewed as another major step in the growing convergence between Wall Street institutions and blockchain networks. Rather than replacing banks entirely, the transaction demonstrated how blockchain systems can integrate with existing regulated financial infrastructure. The on-chain portion of the transaction occurred through the XRP Ledger, while the actual U.S. dollar settlement still moved through the conventional banking system using JPMorgan’s rails.
The transaction also builds on earlier experiments involving Ondo Finance and JPMorgan’s Kinexys. About a year ago, Kinexys, Chainlink and Ondo completed a separate pilot involving tokenized Treasury fund settlement across both public and permissioned blockchain networks.
OUSG itself was originally launched in 2023 on Ethereum before later expanding to Polygon, Solana and eventually the XRP Ledger. The fund currently carries a 3.48% annual percentage yield and has around $610 million in total value locked, according to Ondo Finance.
The broader tokenized Treasury market has rapidly expanded over the past year as large financial institutions increasingly explore blockchain-based settlement systems. Industry estimates place the value of tokenized U.S. Treasury products at nearly $15 billion, though that remains a tiny fraction of the more than $30 trillion U.S. Treasury market.
Major traditional financial firms including BlackRock, BNY Mellon and Franklin Templeton have also entered the tokenization space, while the Depository Trust & Clearing Corporation (DTCC) is preparing to launch its own tokenization platform later this year. Analysts believe tokenization could eventually transform how securities, bonds and funds are traded and settled globally by enabling near-instant settlement, lower operational costs and around-the-clock market access.
The successful pilot involving JPMorgan, Ripple, Mastercard and Ondo Finance is now being seen as one of the clearest demonstrations yet that major financial institutions are actively testing blockchain-based infrastructure for real-world financial markets.
